Russian MinFin launches sovereign Eurobonds replacement, all outstanding issues participating
MOSCOW. Sept 6 (Interfax) - The Russian Finance Ministry launching the procedure for replacing sovereign Eurobonds, the ministry said.
All outstanding sovereign Eurobond issues are being accepted for replacement in accordance with Finance Ministry order No. 388 dated September 5, published on the ministry's website. The amount of coupon income, the frequency of its payment, the maturity date and the par value of the replacement Eurobonds will be the same as for the Eurobonds being replaced.
The bonds are being replaced with the consent of holders on record at the end of the September 12, 2024 trading day.
Bonds can be tendered for replacement in two ways. An offer can be submitted by holders of Russian Eurobonds to a Russian depository, at which such holders have opened a depo account to record the rights to the Eurobonds being replaced, no later than 6:00 p.m. Moscow time on November 14, 2024 (the form and details of the offer information will be published on the Finance Ministry's official website).
Alternatively, if the rights to Russian Eurobonds are recorded in accounts at foreign depositories and if it is impossible to replace them by the first option, the bonds are replaced through the transfer (cession) by the holder of the Eurobonds being replaced of all rights to them to the Finance Ministry and the subsequent transfer (placement) by the Finance Ministry of the replacement Eurobonds based on the corresponding expressions of consent by holders. Such an offer is submitted by holders to the National Settlement Depository on paper with supporting documents attached, the list of which is determined by the order of the ministry, no later than 6:00 p.m. Moscow time on October 15, 2024.
Acceptance by the Finance Ministry of both types of offer takes place on December 5, 2024.
The ministry said sovereign Eurobonds acquired between August 8 and September 12 would be replaced in accordance with a presidential decree on the procedure for replacing Russian Eurobonds published on August 8. It states that depositories will keep separate records of replacement securities if they are received as a result of replacing Eurobonds acquired after the document came into effect, in other words since August 8, and if after this date the holders of Eurobonds were foreign creditors from unfriendly countries. Separate accounting is not carried out if permits for transactions stipulated by presidential decrees were received, or if the Eurobonds being replaced were acquired at organized auctions or from an owner (trustee) who is not a foreign creditor, and whose rights to the securities have been recorded by a Russian depository.
The Finance Ministry said that for consultations on the replacement of Russian Eurobonds, holders can contact professional participants in the securities market, including the ministry's information partners in the Eurobond exchange process - Gazprombank , VTB Capital Trading LLC and Sberbank .
The Finance Ministry's order states that holders can consent to the replacement of any number of Russian Eurobonds. After submitting an offer and supporting documents (if necessary), the holder of the Eurobonds is included in a register of holders, which is kept by the central depository.
By submitting an offer, the holder assures that when the replacement is carried out, the Russian Eurobonds belonging to them are not disputed are not pledged, under seizure or under other restrictions established by law, including judicial, and are not subject to foreclosure, the document says.